Chapter 3 Evaluating Opportunities in the Changing Market Environment

Flashcards covering key concepts from Chapter 3 on evaluating opportunities in a changing market environment.

What are the variables that shape the environment of marketing strategy planning?

Economic, Technological, Political & Legal, and Cultural & Social environments, plus demographic trends.

Why are company objectives important in guiding marketing strategy planning?

They provide direction and criteria for evaluating opportunities and allocating resources.

How do the resources of a firm affect the search for opportunities?

Firm resources such as financial strength, production capability and flexibility, and marketing strengths constrain or enable which opportunities can be pursued.

What are the main types of competition that influence marketing strategy planning?

Monopoly, Monopolistic Competition, Oligopoly, and Pure Competition.

Which external environments affect marketing strategy planning?

Economic, Technological, Political & Legal, Cultural & Social environments, and demographic trends.

What demographic trends affect strategy planning?

Demographic changes such as aging populations and generational shifts (Gen X, Gen Y, Gen Z).

What is the purpose of screening and evaluating marketing strategy opportunities?

To identify the best opportunities to pursue by applying screening criteria and planning grids.

What is the Hierarchy of Objectives (Exhibit 3-2) about?

Shows how company objectives cascade into marketing and functional objectives across departments (e.g., Personal Selling, Mass Selling, Sales Promotion, Publicity, IT, R&D, HR, Finance, Production).

What internal resources may limit or enable opportunity search?

Financial strength; Production capability and flexibility; Marketing strengths.

Name the four classic types of competition.

Monopoly; Monopolistic Competition; Oligopoly; Pure Competition (Perfect Competition).

What is the purpose of a Competitor Matrix and Competitor Analysis?

To identify competitive rivals and analyze competitive advantages.

What are the key production questions in opportunity evaluation?

What and how much can be produced? At what cost?

Why is information about competitors important and what ethical issues surround it?

To gain competitive intelligence; information should be gathered and used ethically.

What is a competitive barrier in the context of existing chains in a market?

An obstacle to entry created by established competitors (e.g., national chain restaurants) that makes it harder for new entrants.

What does GE’s Strategic Planning Grid assess?

Business Strength vs Industry Attractiveness, with levels High/Medium/Low.

What is the Continuum of Environmental Sensitivity for products?

A spectrum where basic commodity-type products are insensitive to the environment, while many consumer products are sensitive to environmental factors and culture.

Give an example of a technological development mentioned.

Bluetooth wireless technology in cars for hands-free calling (Ford example).

Which market structure is described when chain restaurants create a competitive barrier in a thriving suburban area?

Competitive barrier (entry barrier) indicating a hurdle for new entrants.

What are the two types of screening criteria used in market opportunity evaluation?

Qualitative Criteria and Quantitative Criteria.

In the Continuum of Environmental Sensitivity, what is the status of basic commodity-type consumer products?

Insensitive to environmental factors.